Company car addition: what about it?
Do you drive a company car? Then you may be wondering about additional taxable benefit. The use of a company car can be divided into business use and private use. Do you drive the car strictly for business purposes? Then you do not have to pay an additional taxable benefit. Do you drive more than 500 kilometers per year with your company car? Then you do have to pay an additional taxable benefit. Additional taxable benefit is a percentage of the list price (selling price). On Alpina.nl we tell you everything about additional taxable benefit with a company car.
Company car addition 2021
In 2021, there are two rates for the additional tax rate: 12% and 22%. How much additional tax liability you pay depends on the CO2 emissions of your car. These emissions limits are reset every year. In 2017, the addition rate was lowered from 25% to 22%. However, was your car first registered before 2017? Then the 25% additional tax rate will continue to apply to your car.
The table below shows the 2021 addition rate. This table applies to cars with a date of first admission in 2021. In 2021, only cars with no CO2 emissions fall into the 12% addition rate category. The reduced rate applies to hydrogen-powered cars. For zero emission cars not running on hydrogen, the 12% additional tax rate only applies up to and including a list value of €40,000.
| Category | CO2 emissions in grams per kilometer |
|---|---|
| 12% additional tax rate | 0 |
| 22% additional tax rate | more than 0 |
How can I calculate the addition for my company car?
Let's assume an additional tax rate of 22%. To calculate the gross addition rate for your company car, you can use the following sum:
Original list price + VAT + BPM x 0.22.
Note that this is the gross addition to your company car. How much you pay net in additional taxable income also depends on your income. In some cases there is a lower addition. The moment the company car was first used is always taken into account. This is because the addition rates apply for 5 years.
Frequently asked questions about additional taxable income with a company car
My company car is older than 15 years. What do I pay in additional tax?
Is your company car older than 15 years? Then a 35% addition applies to the daily value, not the list price.
I drive less than 500 kilometers privately with my company car each year. Do I not have to pay an additional taxable benefit?
If you have a company car that you drive only for business, you have 500 kilometers per year that you can still drive privately. Then you can still go to the supermarket quickly. However, it is important to keep all private kilometers in your administration. You must report these kilometers to the tax authorities. Do you drive more than 500 kilometers? Then you risk a fine if you do not report it to the tax authorities.
I have a sole proprietorship. What about additional taxes on a company car?
If your company pays the cost of a car, in that case it is a company car. Do you also use the car for private journeys? Then you must pay an additional taxable benefit. This is seen as salary, and therefore tax must be paid on the benefit you get from driving the car privately.
Can I buy off an additional company car?
With some company cars, such as vans for example, it is common for them to be used alternately by different employees. To prevent each employee from having to pay an additional taxable benefit individually, the employer can also buy off the additional taxable benefit. This means that the employer pays €300 final tax per van per year. The van must be used continuously by two or more employees alternately due to the nature of the work, making it difficult to determine whether and to whom the company car has been made available for private purposes. The employees do not have to pay an additional taxable benefit and no mileage records need to be kept.
What about the additional tax liability if my company car has a gray license plate?
A car with a gray license plate has many advantages. For example, you get a discount on motor vehicle taxes and when you buy the car, you do not owe BPM. This makes for significant savings on taxation. Do you have a car with a gray license plate as a company car? Then you are probably wondering about the additional tax liability. For a company car with a gray license plate, the same regulations apply as for a regular company car regarding additional taxable benefit. The addition is determined on the basis of emissions.
As with a regular company car, the addition is calculated on the catalog value. Is the gray license plate car registered before July 1, 2005? Then the addition is calculated over the purchase price including VAT, but excluding BPM. Is the car older than 15 years? Then the addition of 35% is calculated over the current value, not the list price.
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